WORLD

Argentina finally returns to international bond market

Argentina returned to the international bond markets for the first time in 15 years on Monday as it winds down a long-running battle with investors following its 2001 default, IFR reported, according to Reuters.

Argentina announced a US$10-$15 bln bond, whose proceeds will help pay off the holders of its defaulted bonds who had rejected the payment terms of the country's debt restructuring.

New President Mauricio Macri wasted little time after taking office in December in agreeing terms with most of the holdouts, led by US hedge funds Elliott Management and Aurelius Capital.

That cleared the way to start wrapping up the messy litigation in the US courts and come back to the bond market, where the new offering is expected to price on Tuesday.

Argentina set initial price thoughts of 6.75 percent area on a three-year bond and 8 percent area on a 10-year. A five-year is offered at 50 basis points below the 10-year yield, and a 30-year at 85 basis points over it.